REGAL REXNORD CORP
For the period ended Mar 31, 2024. Filed May 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 7, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
5. Goodwill and Intangible Assets
- GOODWILL AND INTANGIBLE ASSETS
Goodwill
As required, the Company performs an annual impairment test of goodwill as of the end of October, or more frequently if events or circumstances change that would more likely than not reduce the fair value of its reporting units below their carrying value.
The following table presents changes to goodwill during the three months ended March 31, 2024:
| Total | Industrial Powertrain Solutions | Power Efficiency Solutions | Automation & Motion Control | |
|---|---|---|---|---|
| Balance as of December 31, 2023 | $6,553.1 | $3,747.0 | $753.9 | $2,052.2 |
| Acquisitions | (5.1) | (5.8) | — | 0.7 |
| Translation Adjustments | (41.8) | (20.1) | (2.2) | (19.5) |
| Balance as of March 31, 2024 | $6,506.2 | $3,721.1 | $751.7 | $2,033.4 |
| Cumulative Goodwill Impairment Charges(1) | $223.6 | $18.1 | $200.4 | $5.1 |
(1) Excludes impairment charges related to Industrial Systems.
Intangible Assets
Intangible assets consist of the following:
| March 31, 2024 · December 31, 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Weighted Average Amortization Period (Years) | Gross Value | AccumulatedAmortization | Net Carrying Amount | Gross Value | AccumulatedAmortization | Net Carrying Amount | |
| Customer Relationships | 15 | $4,000.8 | $804.6 | $3,196.2 | $4,028.5 | $746.2 | $3,282.3 |
| Technology | 13 | 300.3 | 97.5 | 202.8 | 302.6 | 92.9 | 209.7 |
| Trademarks | 10 | 705.5 | 138.7 | 566.8 | 712.1 | 120.7 | 591.4 |
| Total Intangibles | $5,006.6 | $1,040.8 | $3,965.8 | $5,043.2 | $959.8 | $4,083.4 | |
Amortization expense recorded for the three months ended March 31, 2024 was $86.7 million. Amortization expense recorded for the three months ended March 31, 2023 was $46.3 million. Amortization expense for 2024 is estimated to be $348.7 million.
The following table presents future estimated annual amortization for intangible assets:
| Year | Estimated Amortization |
|---|---|
| 2025 | $346.8 |
| 2026 | 343.5 |
| 2027 | 343.4 |
| 2028 | 343.4 |
| 2029 | 341.3 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.